Gold Steady Around $1230 Awaiting Fed

Gold hovered near $1,230 an ounce in early deals on Wednesday, clinging to gains from the previous session after demand for U.S.-made capital goods dropped the most in eight months, as investors wait for the outcome of a Federal Reserve meeting.

Spot gold was up 0.1 percent at $1,229.17 an ounce by 0023 GMT, adding to modest gains on Tuesday.  U.S. gold futures were nearly flat at $1,229.30 an ounce.

The Fed wraps up its two-day policy meeting later on Wednesday at which it is expected to end its bond purchases amid signs of strength in the U.S. economy. The focus will be on when policymakers would start raising U.S. interest rates, which may weigh on gold, a non-interest bearing asset.

CNBC

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